Alternative Energy Sector Now Outperforming Traditional Energy Groups (PBW, XLE, OIH)

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Includes: OIH, PBW, XLE
by: Nick Perry


Nick Perry (Schaeffer's Investment Research) submits: The PowerShares WilderHill Clean Energy ETF (NYSEARCA:PBW) is starting to outpace some of the more traditional energy groups. Here are six-month returns for some leading sector/asset class ETFs:

* streetTRACKS Gold (NYSEARCA:GLD) +25.2%
* Biotech HOLDRS (NYSEARCA:BBH) -0.2%
* SPDR-Energy (NYSEARCA:XLE) +14.5%
* PS Software (NYSEARCA:PSJ) +11.3%
* iShares GS Natural Resources (NYSEARCA:IGE) +18.4%
* PS Biotechnology & Genome (NYSEARCA:PBE) +6.5%
* PS WilderHill Clean Energy (PBW) +37.2%
* iShares DJ U.S. Energy (NYSEARCA:IYE) +13.4%
* Oil Service HOLDRS (NYSEARCA:OIH) +34.6%
* SPDR-Materials (NYSEARCA:XLB) +24.7%

Here is an update to the chart on PBW that I looked at two weeks ago:

When we last looked at this chart we found that the PBW had bounced off its 50-day moving average and was back to challenge the top of its recent range. The fund pushed above that zone and has been consolidating on it, using the previous peaks as support. Thursday saw a move off this support that puts the PBW in a position to break above the short-term consolidation. While this group is definitely volatile, it may offer some opportunities for nimble traders.